NOTIFICATIONS
Public Notice of Modification to Non-Recurring Charges
Southwestern Bartholomew Water Corp 30 - Day Filing
Notice is hereby given that on or about June 18, 2025, Southwestern Bartholomew Water Corporation (SBWC), under and pursuant to the Public Service Commission Act, as amended, intends to file with the Indiana Utility Regulatory Commission (IURC) for an increase in the schedule of rates and charges for water sold by its water utility in an amount of $0.83 per 1,000 gallons as a wholesale water cost tracker.
The changes in the schedule of rates and charges submitted to the Commission are based solely upon the change in the cost of water purchased by SWBWC from The City of Columbus, Indiana. The rate change shall apply for the next practical consumption period following final approval by the Commission in accordance with IC 8-1-2-42.
This is a wholesale water cost tracker that is applicable to all class of customers. Objections can be made to the Secretary of the Commission: IURC, 101 W Washington St, Ste 1500 E, Indianapolis, Indiana 46204 and the Office of Utility Consumer Counselor (OUCC): OUCC, 115 W. Washington St, Ste 1500S; Indianapolis, IN 46204 or at 1-888-441-2494.
Proposed Water Rate Increase and Proposed Issuance of Long-Term Debt
Petitioner’s Exhibit 2-Q
TO THE CUSTOMERS OF
SOUTHWESTERN BARTHOLOMEW WATER CORPORATION.
In Re: Proposed Water Rate Increase and Proposed Issuance of Long-Term Debt
Dear Water Customer:
The purpose of this letter is to notify you that Southwestern Bartholomew Water Corporation. (“SWBWC”) did on July 2 , 2025, file a Petition with the Indiana Utility Regulatory Commission (“Commission”), under Cause No. 46269 , for authority to: increase its water rates and charges and issue long-term debt.
The effects of this Petition, if granted, will:
Approve an overall increase of 50.34% of the current water rates and charges. For a residential customer consuming 4,000 gallons of water per month, the proposed increase is $25.39, from the current charge of $50.44 to $75.83.
Approve SWBWC’s issuance of long-term debt. The borrowed funds will allow SWBWC to update the infrastructure throughout its system.
The Commission will hold a public hearing on SWBWC’s requests. The Indiana Office of the Utility Consumer Counselor (“OUCC”) will represent SWBWC’s customers at the hearing. If you have comments or questions, you may contact:
Southwestern Bartholomew Water Corporation.: 812-342-4421
OUCC: 888-441-2494
Commission: 800-851-4268
SOUTHWESTERN BARTHOLOMEW WATER CORPORATION
Southwestern Bartholomew Water Corporation proposed rate increase.
Dear Members,
Recently you received a notification from Southwest Bartholomew Water Corporation (SWBWC) in regards to a rate increase of 50.34%, to increase water rates and to issue long term debt. That was a legal notice which did not allow us to tell the story behind this potential rate increase as well as explaining the rate will be phased in over several years. We apologize, as a Board, for not being out in front of this with a letter explaining the reasons behind this potential increase, which all of us, as members, could be paying in the near future.
For some background behind SWBWC, let me start with we are a member owned regulated non-profit water corporation. This means we are required by law to comply with the regulations and directives issued by IURC on how we manage the quality of our water, how we structure our finances, and how we address the operating and investment needs of the corporation. Our founding dates back to 1967 with approximately 500 members. At this time, we have 150 miles of water mains, and 50 miles of lines from the main to the meters for our approximately 3213 members. This is equivalent of driving from Columbus to Fort Wayne. Because we have a diverse and hilly terrain, we have 7 water storage tanks of various sizes, four booster pump stations with multiple pumps to push the water around our system, and two treatment plants where the water is softened and treated. We have a lot of infrastructure to service, maintain, and sometimes replace.
This proposed rate increase is composed of three items:
- Operating costs- increases for chemicals, employees, water tank maintenance, electricity, gas, sub-contractors, insurance, trucks, equipment, etc. and the addition of one new employee. Our last rate increase for operations dates back to 2017. As we have all experienced in our household budgets, costs have risen exponentially over the last 8 years. For reference, the Consumer Price Index has risen 29.9% during this time period.
- Infrastructure replacement costs-Includes booster station replacement in Brown County, booster pumps, replacing the softener units at Plant 1, located at Carlos Folger Rd., and upgrading the system at Plant 2, located at Walesboro, Master Pressure Valve replacements, replacing master meters, adding back-up generators to two of the booster stations and adding a portable generator for power outages, as well as an emergency Ogilville tank restoration project, which was completed a few weeks ago.
- 50.34% rate increase- This is to be a two-phase rate increase. There would be two phases driven by us: one for operations and a second increase for infrastructure improvements. The potential 50.34% does not include any proposed increases from Columbus City Utilities.
The size of the increase has been dictated by inflationary pressures pushing 30%, which we have all experienced. The result of this is Bids for projects have risen and quite frankly at more than the underlying inflation rate. Our regulators also have restrictions on savings we can accumulate for future projects.
If you wish to dig deeper into this, under the IURC web site, Cause # 46269, is all of the engineering, accounting, and expert testimony to support the proposed rate increase. This is a proposed rate, the increase will be smaller if we can receive Rural Development Funds for 40-year money at a lesser rate than the Indiana Finance Authority for 20-year money at a slightly higher rate. The scope of the approved project might also be adjusted by the OUCC or the IURC.
You are also welcome to attend our August 11th meeting at 4:30 at Plant 1, please contact the office so we can make sure we accommodate all members. Our Board members are:
Brad Vacketta – President
Joe Lohmeyer- Vice-President
Eric Schneider – Treasurer
Mike Foushee- Secretary
Ian Kohen – Member
QUESTIONS and ANSWERS
- Why the 50.34% rate increase?
We have reviewed that the rate increase is driven by two issues: higher operating costs and a needed investment program.
First, please understand that 50.34% is a notification of the highest expected overall increase needed to support the proposed operating costs and investment program we have submitted to regulators for their review and approval. It also assumes that we do not secure lower-cost federal (Rural Development loan) funding and instead use higher-cost state (Indiana Finance Authority) funding for the project. We were required to communicate the worse-case option to you.
Second, be assured we are driving to use the lower-cost, federal financing, but cuts in the federal budget for the Agriculture Department’s Rural Development (RD) support have driven uncertainty on whether our application can be approved and funded with federal funds. State funding is our back-up plan.
- When will the monthly bills reflect the higher rates? The timing of increasing rates is unclear, but a reasonable assessment is:
Phase 1 – largely dependent on the review of the proposal by the OUCC and approval by the IURC, which we are hopeful will occur by the end of the year.
Phase 2 – this is also dependent on the review and approval of the proposal by the IURC but typically is based on the timing of loan closing and the receipt of bids for the project. We are hopeful that this will occur in the spring or early summer of 2026.
- Is spending for tank inspection and maintenance really necessary?
Yes. In 2023, we had an in-depth, professional inspection performed at each of our seven tanks with a 20-year projection on what is required to properly maintain those tanks with annual and periodic maintenance. The findings and recommendations were sobering. While none of the tanks need to be replaced, safety and deterioration concerns drove us to launch the uplift of the Ogilville tank in 2024, and to launch a savings program to properly inspect and maintain all tanks across future years.
- What’s interest cost of the Ogilville Tank Loan?
We had to borrow funds to finance the needed uplift of the Ogilville tank. A line of credit was secured to borrow the funds. The interest rate is roughly 7.5%. So you know, we are looking to refinance the open balance with proceeds from the Rural Development loan.
- Why are you adding staffing?
We’ve had conversations with Doug Prather, our Operations Superintendent, that have enhanced our awareness that Doug will be retiring at some time in the not-so-distant future. Doug has a wealth of knowledge and experience that we will eventually miss. With Doug’s full support, the Board approved the hiring of an Assistant Superintendent to learn the role of the Superintendent and to learn as many details as practical of our operating equipment and distribution system.
- Why do tanks need dedicated gensets when they’ve not had any for the last 60 years?
This is in response to harsher weather conditions in recent years. Beck’s Grove and Brown County tank locations are in more remote locations and are subject to higher risk of losing power for the pumps and operating equipment at those sites. As experienced in July 2023, a power failure at either of these sites exposes us to depleting the water in these tanks or dropping the water pressure from those tanks to risky levels. The remote locations and blocked roads make depending on getting portable generators to those sites a riskier back-up plan. Dedicated gensets with automated controls to kick-on in times of electricity loss is deemed an appropriate investment to improve the reliability of supply to customers / members depending on water from those tanks. Having a portable generator to protect the other tanks / sites is also planned.
- Why is the major investment in water softening equipment needed?
The water treatment plant on Folger Drive (WTP #1) was constructed circa 1967 and underwent major improvements in 1988. In 2001, the ion exchange softening units were last replaced. The WTP #1 ion exchange softeners and high service pumps (HSPs) are in deteriorated condition and nearing, if not exceeding, their respective useful lives.
WTP #2 on SR 58 was constructed circa 2002. WTP #2 ion exchange softeners and HSPs are nearing their end of useful life but considered in better structural condition compared to WTP #1 of similar age. To ensure continual functionality, they should be inspected and repaired, rehabilitated, or replaced accordingly. The softeners’ resin media needs replacement to extend softening runs and reduce regeneration cycle frequency and brine usage.
- Why replace the Brown County Booster Station
The Brown County / State Road 46 BPS was constructed in 1974 and is now 50 years old. In addition, the Brown County booster station is a pre-engineered below grade station which makes maintenance difficult, is prone to flooding and is potentially hazardous to access given its below grade construction and confined space requirements.
The topography of the service area changes significantly across the system with a large variance in elevation across the system. This results in a large range of system pressure in the distribution system and a need for pressure reducing valves, storage tanks, and booster stations throughout the system to compensate for the changes in elevation. The line pressure impacts the water distribution system infrastructure and requires careful consideration in the design of distribution system improvements. Also, the distribution system is largely rural with low customer density, so the cost per member is higher.
We do not produce water, and it’s important to look at rates of comparable utilities. Even with the increase, we are very much in line with the Town of Nashville and Decatur County rates, both of which are purchased water systems.